Chicago Multifamily Market Report: Team Insights from a Record Year in Chicago

Despite a business environment that never quite settled on whether it was advancing or retreating, 2025 proved to be a record year for multifamily transactions at Essex. The brokerage team of Kate Varde, Doug Imber, Rick Ofman, Tim Kavanaugh, and Teddy Drake closed, listed, or put under contract 52 transactions totaling 1,217 units with a combined value of just over $300 million. For the first time, the team averaged one transaction per week through the pipeline.

Beyond the numbers, this volume of activity provided valuable insights into where Chicago’s multifamily market is headed and how it’s evolving.

Geographic Concentration Reflects Demand Patterns

Their 52 transactions spanned 11 different Chicago neighborhoods and 3 suburban markets, but the concentration was telling. The majority of that activity remained along the lakefront corridor stretching from Hyde Park to Evanston, with significant deals also closing in West Town, Ravenswood, Humboldt Park and Albany Park. This geographic spread reflects both where multifamily inventory exists and where investors continue to see long-term value, even in an uncertain rate environment.

The Power of Internal Collaboration

One surprising data point: the team represented both the buyer and seller in only a third of these transactions. In 53% of deals, the team represented the seller while another Essex broker brought the buyer. This speaks to a broader market dynamic: when multiple brokers are actively working a market, the likelihood of finding the right buyer at the right price increases significantly. Competition within a brokerage, when structured properly, benefits sellers by surfacing buyers who may be more motivated or better capitalized than what any single broker might find alone.

Relationships Drive Repeat Business

Perhaps the most significant trend: 77% of the team’s transactions this year involved their repeat clients, with another 9% coming from relationships that had been cultivated for a decade or more before transacting. In a market defined by uncertainty, investors are clearly returning to advisors they trust and brokers who understand their specific investment thesis. The implication for multifamily owners is clear: working with brokers who understand your portfolio across multiple neighborhoods and property types creates efficiency and better outcomes over time.

Pricing Discipline Matters

When analyzing pricing accuracy, the team’s proposals came within 98% of actual sales prices on a deal-by-deal basis, though the weighted average fell to 93.5% after missing one larger assignment by a significant margin. This reveals an important market reality: aggressive pricing strategies work differently depending on asset size and quality. Smaller deals tend to perform closer to expectations, while larger assignments require more conservative positioning in today’s environment.

What Didn’t Sell Tells Its Own Story

Ten transactions that didn’t close offer their own lessons. Four involved a single client who ultimately chose to hold rather than sell at current pricing (a decision that reflects broader concerns about whether today’s valuations will look smart in hindsight). Another deal fell apart despite both parties’ best efforts when the city wouldn’t approve a reasonable zoning change, leaving a vacant church on the tax rolls instead of creating 30 new apartments in a supply-constrained market. The remaining five expired listings reflected pricing that was either too aggressive for market conditions or sellers who simply weren’t motivated enough to adjust to buyer expectations.

Looking Ahead

As Essex enters its 36th year, the market signals from 2025 are mixed but not discouraging. Transaction volume is achievable for teams that prioritize collaboration, maintain deep client relationships, and price deals appropriately. Technology (particularly AI tools for data collection and analysis) is becoming essential for maintaining efficiency at higher transaction volumes.

For multifamily owners considering a sale or acquisition in 2026, the lesson from this year is straightforward: work with advisors who have current market activity, maintain pricing discipline, and don’t underestimate the value of a brokerage structure that creates competition for your deal.

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Since 1990, Essex Realty Group, LLC has served Chicago’s investment real estate market as a top multifamily brokerage firm, specializing in Chicago multifamily for sale properties. Contact us today to learn more about our recent multifamily and mixed-use property sales, or click HERE.

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